The Trade Desk operates a self-service platform that enables ad buyers to purchase and manage data-driven digital advertising campaigns using their own teams in the United States, Europe, Asia, and Australia. Its platform allows clients to manage integrated advertising campaigns in various advertising formats, including display, video and social, and on a multitude of devices, including computers, mobile devices and connected TV. The Trade Desk, Inc. was founded in 2009 and is based in Ventura, California.
TTD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Trade Desk Inc. To summarize, we found that Trade Desk Inc ranked in the 11th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 88.5%. The most interesting components of our discounted cash flow analysis for Trade Desk Inc ended up being:
Trade Desk Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Trade Desk Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -29.83. This coverage rate is greater than that of only 4.28% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Technology), Trade Desk Inc has a reliance on debt greater than merely 12.37% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
INOV, KLIC, SPOT, SSNT, and EVOP can be thought of as valuation peers to TTD, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
KeyBanc is out with positivity today on a pair of connected TV opportunities, underlined by information at The Trade Desk's Groundswell event. The event highlighted trends in advertising, including COVID-19's impact on the behavior of advertisers and consumers, and the tailwind that CTV would see from streaming and cord-cutting, with...
If you are looking for the best ideas for your portfolio you may want to consider some of Saga Partners top stock picks. Saga Partners, an investment management firm, is bullish on Trade Desk Inc. (NASDAQ:TTD) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its […]
Last June, I wrote an article titled "The Trade Desk Could Be The Investment Of A Lifetime." I wanted to revisit that thesis and explain why I prefer The Trade Desk (TTD) over other high-flying technology stocks. These high flyers tend to get grouped together, evidenced by The Trade Desk's...
Joseph Kowaleski on Seeking Alpha | September 21, 2020